The Family

The Family
The extended family

Wednesday, January 7, 2009

I guess it's as good as the auto bailout

Well, the local news just had it's opening story talking about the guy from 'Girls Gone Wild' and Larry Flynt are going to Congress to see if they can get a bailout package for the porn industry, talking about how they employ more people than the auto industry, they have $13 billion in sales annually, and they are hurting with the recession. While I do not agree with their business not believe they deserve nor will receive a bailout, I see the point. I don't know if they are for real in this request, but where does the giving out of taxpayer money stop?
The beauty of capitalism is that it forces business to continue to grow, become more efficient, remain relevant in society, and keep struggling to be better so the public will continue to use them. If something else becomes better, then the old product goes out the window. Should the government should have bailed out Morris Code machines or the telegraph? How about the Pony Express? Stage Coaches? Should we have bailed out Betamax or 8-Track players, record players, cassette tapes, VHS tapes, or even CD's and the music industry as a whole?
The problem with the auto bailout is that they are doing things that worked before technology overtook their processes. Look at some of the Japanese companies. Sega was an industry giant with the Sega Genesis, Sega Saturn, Game Gear, and some of their own games. They had a good market share against Nintendo. Then Play Station came in and knocked Sega to #3. They began losing market share and revamped their entire company to move away from gaming systems to creating games - arcade and home console. They are now one of the most successful game creators out there. They didn't go to the Japanese government and ask for a bailout. They revamped, reformed, and succeeded.
Ford, GM, and Chrysler need to change. They can't continue to do the same thing and hope for different results (the true definition of insanity.) Is this going to hurt people? Yes, but not as many as if they don't try to change at all and everyone loses their jobs. What made Henry Ford successful was seeing a product and learning how to do it better. Now the company that bears his name sees a product and is too weighed down by bureaucracy, union demands, and no thinking outside the box laziness to be able to make change.
Fontana suffered, and in a way still does, from the closure of Kaiser Steel decades ago because they became irrelevant having to keep up with the union while keeping their product cheap enough against foreign product. They weren't bailed out. It was just business.
I think I am going to ask for a bailout plan, as well as propose one for Atari because I miss those 2600 games. Nothing like the floating square that was supposed to represent a round ball breaking non-descript blocks.
(Is this porn bailout story so important that they have to show it twice this hour?)

No comments: